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The first stock of pigs is in debt crisis! 4.1 billion were frozen, relying on 800 Shaxian snacks to survive

November 08, 2018 08:52
source: AI Finance and Economics
edit:Eastern Fortune Network

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[The first stock of pigs is in debt crisis! 4.1 billion frozen by 800 Shaxian snacks difficult to continue] China's iL boss Wang Sicong, who won the first LOL world champion, is still celebrating the celebration, but also the second generation, winning the first world championship for China. The days of OMG boss Hou Geting are not so good. (AI Finance and Economics)

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The iG boss Wang Sicong, who won the first LOL world championship for China, is still celebrating the enthusiasm for the celebration, but it is also the second generation, and the OMG boss Hou Geting, who won the first world championship for China, is not so good.

On November 5th, Hou Geting’s father Hou Jianfang was listed as the actual controller.Young eagle farmingAnnounced that the first phase of the short-term financing bonds in 2018 did not pay the principal and interest on schedule. According to the announcement, "As of the end of the business on November 5, 2018, the young Eagle Farming and Animal Husbandry Group Co., Ltd. failed to comply with the agreement to pay the '18 eagle peasant husbandry SCP001' funds to the custodian institution in full and on time, which constitutes a substantial breach of contract" .

Earlier on October 30, the young peasant agriculture and animal husbandry announced that due to tight cash flow, "18 eagle farming and animal husbandry SCP001" there is a risk of redemption. "18 young eagle farming and animal husbandry SCP001" issued a total of 500 million yuan,interest rate7.5%, the issuance period is 270 days, and the total principal and interest payable is 530 million yuan.

This ultra-short contract breach is only a microcosm of the crisis in the “first pig raising”.

Debt rating crisis

As of the announcement on November 6, Hou Jianfang held a total of 1.26 billion shares of the company, accounting for 40% of the company's total share capital, worth 4.1 billion yuan, were frozen. Among them, pledgeCITIC Jiantou45.73 million shares constitute a breach of contract. CITIC Construction Investment intends to execute the liquidation of 15.2454 million shares of the above shares; pledge of 249 million shares of CIC Securities constitutes a breach of contract, and CIC Securities intends to dispose of the above shares.

In addition to Hou Jianfang, other major shareholders of the company also have shares frozen. The frozen shares accounted for 49.24% of the company's total share capital.

After the exposure of the ultra-short contract breach, Joint Credit Rating Co., Ltd. (hereinafter referred to as the joint rating) also lowered the long-term credit rating of the young peasant husbandry and animal husbandry to C. This is the fifth time in five months that the joint rating has lowered its long-term credit rating. Before July 26, the credit rating of the young eagle farmer is still AA.

According to the information disclosed by the joint rating on October 23, the people provided by the young eagle farmer on October 10bankIn the corporate credit report, there are 2 non-performing loans, with a balance of nearly 130 million yuan; 11 interest rates, with a balance of nearly 15 million yuan, and the credit record has been deteriorating.

According to the third quarter earnings report of the young peasant farming and animal husbandry, the company's revenue in the first three quarters was 3.53 billion yuan, down 7% year-on-year, net profit loss was 870 million yuan, and net profit after deduction was 950 million yuan, down nearly 1500% year-on-year, 2018 The annual full-year performance is expected to be a loss of 1.5 billion to 1.7 billion yuan.

As of the end of the reporting period, the net assets of the young eagle farmers and animal husbandry totaled 4.04 billion yuan, while the non-current liabilities due within one year exceeded 3.85 billion yuan.

 "The first stock of pigs" from scratch

On September 15, 2010, Young Eagle Farming and Animal Husband was listed on the small and medium-sized board. As the first listed company in China that is mainly engaged in pig breeding, it was praised by the industry as “the first stock of Chinese pigs”.

The founder of the legendary eagle farmer and animal husbandry Hou Jianfang, starting a business of 200 yuan to start a chicken farm, "even 200 yuan is also borrowed."

According to China Net, in 1988, Hou Jianfang decided to start a business in his hometown after another college entrance examination. When he was short of money, he was able to borrow 10 yuan and 20 yuan. After half a year, the chicken can lay eggs, the funds are gradually returned, Hou Jianfang goes to pay back the money, and gives people more eggs.

After the chickens entered the stable, Hou Jianfang began to ponder the pigs. In 2004, the young eagle farms and pig farms were built and began to raise pigs on a large scale. In the past 10 years, Hou Jianfang's entrepreneurship has not been smooth sailing. The SARS in 2003, the bird flu in 2004-2005, and the high fever in 2006 are testing the anti-risk ability of the eagle peas.

Beginning in 2006, under the leadership of Hou Jianfang, the young eagle farming and animal husbandry began to reform the traditional farming model, combining the past “company + farmer” model and the “company + base + farmer” model to create a “mother”. Eagle mode." The company will pay for the construction or rent of pig pens, provide piglets, vaccines and feeds in a unified manner. Farmers can get bottom-up benefits if they raise pigs according to the standard.

After the listing, the young eagle farming and animal husbandry entered a period of rapid development and continued to develop in a diversified direction. In December 2016, Young Eagle Farming and Animal Husbandry invested 135 million in cooperation with Shaxian Snacks, trying to improve the viability and profitability of Shaxian Snack Shop by integrating 60,000 Shaxian snack shops across the country. Hou Jianfang said in public that "in the past, some people said that you can't build a restaurant because you sell pork. I said that it is impossible. As a result, I accidentally borrowed someone else's restaurant."

According to the annual report of the Young Eagle Agriculture and Animal Husbandry in 2017, during the reporting period, Shaxian snacks completed more than 800 stores in the country, and the annual pork consumption of each single store exceeded 4 tons. At the same time, the young eagle farmer began to serve some Shaxian snack bars. Supply pork products, and develop more than ten kinds of customized pork products, the first to form a stable supply in Zhengzhou Shaxian snack bar.

Pig-raising company in crisis

In explaining the reasons for not paying the financing bonds in full, the young peas farmers said that the sales price and quantity of the company's live pigs were lower than expected due to factors such as the blockade and embargo of the “African swine fever” epidemic area. The company has a large impact; due to factors such as financial policies, the company’s liquidity situation has not been significantly improved, and there have been many major unfavorable issues such as the failure of debt maturity, asset seizure, and continuous rating downgrade. Tension, the company does not have the ability to pay on time.

In the semi-annual report of 2018, the young eagle farmer and animal husbandry also said that the hog market was affected by factors such as changes in the supply and demand relationship of the “pig cycle”, and the price of live pigs dropped sharply. At the same time, the cost of breeding of the company increased compared with the same period of the previous year, resulting in the profitability of livestock products. decline.

However, external market changes are not the only factors that cause the liquidity crisis of the young eagle.

The young eagle farming and animal husbandry announced on October 26 that the company upgraded the breeding model in 2015. The young eagle farming and animal husbandry is responsible for the land leasing and compliance procedures of all farms; the cooperative is mainly responsible for farm construction, equipment investment and coordination. Farmers and daily maintenance, maintenance, manure treatment, etc.; farmers are mainly responsible for the fine management of individual pig houses.

When a cooperative signing a letter of intent for cooperation with a company, it is necessary to pay the company no less than 20% of the total investment of the cooperative construction cooperative. The remaining shortfall is financed by the cooperative itself or by financial institutions. When the funds are not available, the company will first lend to the cooperative for its use.ConstructionAfter the bank funds are in place, the cooperative will return the loan.

By the end of September 2018, Young Eagle Farming and Animal Husbandry had provided financial assistance of nearly 1.2 billion yuan to 226 cooperatives with which it had business cooperation, accounting for 24.15% of 2017 net assets.

The fact that it is in debt crisis but continues to contribute to the outside world has also attracted the attention of the regulatory authorities.

The Shenzhen Stock Exchange has issued a letter of concern asking the young peasants to provide financial assistance, the recipients, the date and amount of financial assistance, the date and amount of reimbursement, whether interest and interest are charged, and before November 5th. The situation, whether there is a relationship between the company and the funded object, etc. However, the young eagle farmer and animal husbandry did not reply on time and applied to extend the reply date to November 16.

(Article source: AI Finance and Economics)

                (Editor: DF376)

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